LA Goes After Carl's Jr. For Alleged Wage Theft

LOS ANGELES, CA — In the highest profile case yet from the city's crackdown on wage theft, Los Angeles City Attorney Mike Feuer announced Monday that he is going after Carl's Jr. for allegedly failing to pay employees the minimum wage at locations across LA.

According to Feuer, the fast food franchise failed to pay 37 workers at seven locations citywide the minimum wage of $10.50 an hour over the last half of 2016. The case was triggered by a tip from a complaint from a Carl's Jr. employee. The company did not immediately respond to a request to comment.

Carl's Jr. could be forced to pay $1.45 million in restitution and penalties for alleged lost wages totaling around $5,000. The penalties add up because a fine is assessed each day the wage is unpaid. Furthermore, Carl's Jr. racked up more fines for allegedly failing to allow investigators access to employees and for not posting required signage about minimum wage laws.

"L.A. law is clear: Employees must be paid at least the minimum wage. Anything less is a slap in the face to workers struggling to make ends meet. This is a major corporation that should know the rules," Feuer said. "Our offices will always aggressively stand up for workers to ensure they get the wages they're owed, and all the protections and benefits the law demands."

Feuer said the case stemmed from a complaint made by a Carl's Jr. employee, which triggered an investigation by the city's Office of Wage Standards.

"The minimum wage is a legally established threshold below which employers may not venture to pay their workers," said John Reamer, who oversees the Office of Wage Standards as head of the Bureau of Contract Administration. "The minimum wage was established to ensure economic equity and opportunity, and the Office of Wage Standards will continue to partner with the city attorney to regulate and enforce compliance with the law."

Feuer said that Carl's Jr. sent his office documentation Monday showing it had paid its workers for the lost wages and that his office was still working to verify the paperwork.

The money Carl's Jr. is being ordered to pay is $910,010 in penalties to the 37 employees no later than July 24, and $541,423 in penalties and fines for allegedly violating the minimum wage law, failing to post the required notice at two locations and failing to provide investigators access to interview employees at two locations.

Feuer said Carl's Jr. has a right to appeal the legal action, but failure to make payments could result in a civil action or a lien against Carl's Jr. properties in the city alleged to be involved in the wage theft.

City News Service and Patch staffer Paige Austin contributed to this report. Photo: Keenan Pepper via flickr.com